USD/CHF opened the week at 0.78185 and closed at 0.78916, gaining 73 pips or 0.93%. The pair touched a weekly high of 0.79266 on Wednesday before pulling back. Trading volume averaged 37,081 contracts daily, with Friday's session seeing notably thin liquidity at just 7,716 contracts.
Dollar strength reasserted itself as Asian markets came under pressure. South Korea's KOSPI index fell sharply on Thursday while the won hit a 17-year low against the dollar. The turmoil spread across risk assets, pushing traders into the safety of the greenback.
China's central bank set the USD/CNY reference rate well above the Reuters estimate on Friday. This significant deviation signaled Beijing's tolerance for yuan weakness, further supporting broad dollar strength against the Swiss franc and other majors.
No high-impact events appear on the economic calendar for the coming week. This leaves USD/CHF vulnerable to broader market themes and risk sentiment shifts. If Asian market stress continues, expect the dollar to maintain its bid. Should stability return, the franc could recover some lost ground.
Current positioning shows 54.3% of traders are long USD/CHF while 45.7% hold short positions. This mild bullish skew suggests the market sees room for further upside, though the balance is close enough that a shift in sentiment could quickly reverse the dynamic.
The weekly high at 0.79266 serves as immediate resistance. A close above this level opens the path to psychological round numbers above. Support sits at the Monday low of 0.78182. If this level breaks, the prior week's range comes into focus.
Byline: LHFX Research
Risk disclaimer. CFD trading involves substantial risk and is not suitable for every investor. Leverage works both ways and can amplify losses beyond your initial deposit. The analysis above is general market commentary and does not constitute investment advice or a recommendation to buy or sell any instrument. LHFX is regulated by the FSC Mauritius and the FSCA in South Africa.
